DSP Mutual Fund has deferred a new fund offer (NFO) for the DSP BFSI Next Index Fund till further notice. The NFO period of this new index scheme was scheduled to start on 22nd October and was expected to end on 5th November 2018. If/when launched, the new scheme will be an open–ended index fund that tracks the S&P BSE Diversified Financials Revenue Growth Index. The scheme was expected to have the following features as per the original NFO plan. Being open-ended in nature, this scheme will allow investors to invest in/redeem scheme units on all days when markets are open, however one needs to keep in mind that a 1% exit load is applicable to unit redemptions made within 12 months from date of unit allocation.
Being an index fund that tracks a specific equity index, securities featured in the scheme’s chosen benchmark index will account for 95 to 100% of the assets of the DSP BFSI Next Index Fund. The remaining assets comprising up to 5% of the scheme’s portfolio will include various debt and money market securities. Some key investments that are not allowed in case of this DSP MF index fund include credit default swaps, securitized debt investments, foreign security investments and corporate debt security repos.
S&P BSE Diversified Financials Revenue Growth Index will serve as the benchmark for the DSP BFSI Next Index Fund. As of 19th October 2018, the 1 year, 5 year and 10 year returns of this index were recorded at -19.27%, 23.81% and 21.50%. This indicates that while the index constituents have witnessed significant growth in the longer term i.e. the 5 and 10 year period, there has been significant short term correction in the index too. This correction could indicate an opportunity to pick up good quality financial sector stocks at relatively cheap valuations. Some top constituents of this sectoral index include Bajaj Finance, ICICI Bank, Bajaj Finserv, HDFC Bank, IndusInd Bank and Kotak Mahindra Bank.
The DSP BFSI Next Index Fund will be managed by Gauri Sekaria. Other funds managed by her include the passively managed DSP MF schemes of DSP Liquid ETF and DSP Equal Nifty 50 Fund. While the actions of fund managers produce only limited impact on the performance of passively managed schemes, these funds have garnered significant investor interest since launch. The AUM of DSP Liquid ETF and DSP Equal Nifty 50 Fund were recorded at Rs. 67 crore and Rs. 120 crore respectively as of 30th September 2018.
Additional Information about DSP BFSI Next Index Fund NFO
| NFO Period | 22nd October to 5th November |
| Minimum Investment | Rs. 500 |
| Benchmark Index | S&P BSE Diversified Financials Revenue Growth Index |
| Fund Manager | Gauri Sekaria |
Update: DSP Mutual Fund has announced via a notice issued on 20th October 2018 that the NFO of the DSP BFSI Next Index Fund has been deferred till further notice.
Other Funds by DSP Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| DSP Equity Direct Plan | 14.11 | 2678.36 | Multi Cap Fund |
| DSP US Flexible Equity Fund | 14.08 | 179.18 | Sectoral/Thematic Fund |
| DSP Equity & Bond Fund | 11.68 | 7189.75 | Aggressive Hybrid Fund |
| DSP Tax Saver Fund | 11.05 | 4366.38 | ELSS |
| DSP Focus Direct Plan | 10.35 | 2961.32 | Multi Cap Fund |
| DSP Equity Opportunities Fund | 10.28 | 5559.95 | Large & Mid Cap Fund |
| DSP Midcap Fund | 10.01 | 5719.8 | Mid Cap Fund |
| DSP Top 100 Equity Fund | 9.85 | 3097.9 | Large Cap Fund |
| DSP Government Securities Fund | 9.28 | 210 | Gilt Fund |
| DSP Dynamic Asset Allocation Fund | 9.16 | 844.71 | Dynamic Asset Allocation |
| DSP Short Term Fund | 8.11 | 3628 | Short Duration Fund |
| DSP Strategic Bond Fund | 8.11 | 1350.51 | Dynamic Bond Fund |
| DSP Banking & PSU Debt Fund | 8.09 | 1629.22 | Banking and PSU Fund |
| DSP 10Y G-Sec Fund | 8.02 | 36.57 | Gilt Fund with 10 year constant duration |
| DSP Low Duration Fund | 7.91 | 4993.08 | Low Duration Fund |
| DSP Global Allocation Fund | 7.85 | 30.35 | Sectoral/Thematic Fund |
| DSP Equity Savings Fund | 7.38 | 1619.88 | Equity Hybrid Saving Fund |
| DSP Savings Direct Plan | 7.18 | 45.17 | Money Market Fund |
| DSP Ultra Short Fund | 6.9 | 4005.47 | Ultra Short Duration Fund |
| DSP Liquidity Direct Growth | 6.89 | 17472.46 | Liquid Fund |
{Data as on Feb 19, 2020; Source: Value Research}